Statistical Modelling of the Effect of Government Investments on Poverty Alleviation in Mogadishu, Somalia
Loading...
Date
2024
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
This study examines the effect of government investments on poverty alleviation in Mogadishu, Somalia, focusing on key sectors such as agriculture, manufacturing, and small and medium enterprises (SMEs). Data were collected through surveys and official government reports. By employing advanced statistical methods, including Granger-causality tests, Johansen co-integration tests, Lasso regression, and Ridge regression, the research analyzes both short-term and long-term impacts on poverty reduction indicators like household income, access to clean water, food, and shelter. The findings reveal that investments in SMEs have the most significant positive effect, driving improvements in living standards and contributing to sustainable economic growth. In contrast, investments in agriculture show a less consistent impact, suggesting the need for more targeted strategies to enhance their effectiveness. The manufacturing sector also contributes to poverty alleviation, though its effects are less pronounced compared to SMEs. This study underscores the importance of sector-specific investment strategies, particularly focusing on SMEs, to achieve meaningful poverty reduction in conflict-affected regions. Additionally, it is recommended that policy makers prioritize resource allocation towards sectors demonstrating the highest returns on investment for poverty alleviation. The findings contribute to the broader discourse on development economics, highlighting key areas for continued research and policy refinement.